Passion For Learning Case Analysis

929 words - 4 pages

Passion for Learning Case Analysis

Andrew Popell, founder and president of Passion for Learning, started a direct mail order catalogue company in 1994 that exclusively sold educational toys targeted at elementary-school children between the ages of 6 to 12. After sending out the company's first catalogue and receiving a disappointing .77% response rate, as well as discovering that specialty chains that focused on educational toys (such as Learningsmith, Zany Brainy, and Noodle Kidoodle) were all expanding rapidly, Popell needed to decide what strategy would fit best with the environment he was competing in.

Industry analysis:

Retail toy sales in 1993 were estimated at $17.5 billion dollars, and of those sales, approximately half were distributed amongst the five largest toy distributors – Toy's ‘R' Us, Wal-mart, Kmart, Target, and Kay-Bee. Over the past twelve years, expenditure on household toys had grown by almost 200% (from $265 in 1980 to $525 in 1992) because of the many baby boomer's with children who were entering their peak earning years. Moving forward, toy demand was expected to strengthen because of the onset of baby boomlet's that will be raising children and subsequently purchasing toys.

Competition between toy retailers was intense as they competed for lower costs. Toy's ‘R' Us expressed concern about slowing sales as they began experiencing pressure from discount retailers (IE: wall-mart and Kmart) as the discounters market share grew from 20% to 34% between 1989 and 1994 respectively. Large toy suppliers and mass merchandisers began networking and forming special agreements where they would create special discounts on volume or exclusive distribution on popular toys. Toy manufacturers would charge gross margins of 30% for mass merchandisers and 70% for small retailers, effectively cornering the market for mass merchandisers to be the low cost leaders.

Educational toys, on the other hand, only represented 20% of toy industry sales (approximately $3.5 billion), but interest in the educational toy market had been on the rise. Independent specialty stores were able to command gross margins of 100%, (as compared to mass merchants gross margin of only 30%), with per square foot sales more than double the mass merchants (Learningsmith had sales/sq. foot of $540 vs. Toy's ‘R' Us of $220), making the educational toy industry attractive for small, independent retailers. One major challenge facing the educational toy industry was that since little capital was required to enter into the market (ie: low barriers to entry), competition arose. Companies entered the market and rapidly expanded their presence as they fought for market share (ie: Learningsmith opened 25 stores in in 3 years).

Popell's Strategy for Passion for Learning:

In order for PFL to be competitive in the toy distribution industry, Popell came up with a mail-order service strategy to provide his core customers – educated parents and...

Find Another Essay On Passion for Learning Case Analysis

Case StudyAnalysis (New Pressure for learning and development in the fork-lift truck factory of Smarna Gora Holdings)

949 words - 4 pages employees was also reduced. In the fork-lift truck factory, the manager, Igor Pavlin has identified that improvement is needed the areas of learning, and management and employee development within the factory. Such improvements are influenced by pressures from within and outside of the organization. A prioritized action plan therefore is very important for both management and employee development in Smarna Gora.There are number of external and

Peri Espana Case Analysis (For Organizational Behavior): Case Study on working environment in a big construction company in Spain.

2344 words - 9 pages new change will make the leaders and managers at PERI have new ways of reaching decisions; they will be working with a new group of colleagues and employees; new ways of carrying their job will change.Change is usually resisted with in the organization; this is because people resist attempts to get them to adopt different behavior patterns. How people respond to the attempt of changing their behavior depends on the cost-benefit (for them) analysis

Aston Blair case analysis - identifies problems, alternatives, and make recommendations for action.

7612 words - 30 pages and Russell Cornelius, Vice President of Economic Analysis. After Meir's presentation at the beginning of the August 4th meeting, the marketing managers insisted that they wouldn't take advice from "Cornelius' group that can't even forecast what the economy is going to do" (Aston-Blair Case, 1999: M-6, 18). None of the other team members offered support for Meir's ideas, therefore this incident proves that the task force lacks the ability to

Memorandum for Case Analysis

1206 words - 5 pages a night club washroom, the BC Human Right Tribunal determined "that discrimination against a transsexual constitutes discrimination because of physical or mental disability" (para. 97) and "that transsexuals in transition who are living as members of the desired sex should be considered to be members of that sex for the purposes of human rights legislation" (para. 107). In the same case, the Tribunal found that the night club had discriminated

Testing Chimpanzees for Social Learning Analysis

1704 words - 7 pages Understanding the cumulative process of cultural evolution across species, has been in the focus of recent research. This interest is motivated by the search for the evolutionary origins of the human capacity for culture that is also apparent in many other studied species such as wolves, dolphins, guppies and apes (Tomasello et al., 1993). Research in cross cultural patterns of social learning brings us closer to understanding the underlying

Case Study for Student Analysis

905 words - 4 pages Running head: CASE STUDY FOR STUDENT ANALYSISCase Study for Student AnalysisPeggy BarnettCOMM/215 - Essentials of College EnglishJerry BolzakOctober 16, 2003Case Study for Student AnalysisArthur Reed is doing an excellent job in managing both first and second shifts. He has the respect of his peers in the grocery business. His primary management dilemma continues to be on a yearly basis of having a dependable constant pool of summer replacement

Case Study for Student Analysis

921 words - 4 pages Case Study for Student AnalysisCarl Robinson is the new campus recruiter for ABC, Inc. He takes us through his experience at work that was becoming very hectic and frustrating due to number of reasons such as unavailability of the training room, missing important newly hired employees information as well as shortage of orientation manuals. All of this is making Carl extremely frustrated. In this paper, we will analyze possible reasons for such

Case Study for Student Analysis

758 words - 3 pages effectiveness of them to reach the pinnacle of their careers. The process of setting goals, setting targets, and creating agendas aids in achieving the complete step-by-step hiring process.AlternativesThe hiring of individuals, stated in this case, did not adhere to an aggressive hiring policy for starting the new-hires immediately upon hiring. More than 60 days passed from the day these individuals were hired, in early April, until the first day

Luby's Cafeteria - Will changing the recipe improve performance? This brief case includes a SWOT analysis and recommendations for improving profit margins.

1039 words - 4 pages become more expensive to gain capital for needed improvements.Strategic Issue or Problems:Luby's obvious problems lie within its shrinking profit margins or net income that were described in detail under the "weaknesses" section of the previous SWOT analysis. This coincides with the poor performance of its stock. Luby's stock (according to Case 22) has fallen 37 percent from its high on November 30, 1996 of $25.25 to a high on December 31, 1998 of

Case Study Analysis Part A (Power Play for Howard)

1546 words - 6 pages general managers of the bullets and heat will both benefit by negotiating a seven year contract because they know Juwan will only get better in skill and leadership, continuing to produce good statistics on the basketball court, and possibly helping to lead his team to a championship. In Pat Riley's case he already has Alonso Mourning, and adding Juwan Howard to the Miami heat made for a powerful duo on the basketball court; the kind of duo that

Case Study for Padgett Paper Products Company- analysis for the options

1843 words - 7 pages within ten days, versus paying the full amount in 30 days. (Case Studies in Finance) Accounts receivable turnover ratio is lower than the industry average (see exhibit 7a). The average collection period is twice as long as the payment terms. This means that Padgett's recourse for late payment is not strict enough and that maybe they need to consider increasing the penalty for late payment. If they could persuade customers to take this discount

Similar Essays

Case Analysis For Globalstudent.Com

1905 words - 8 pages Case Analysis For Globalstudent.comSituation Analysis (SWOT analysis)The goal of is to be the world's first one-stop, international web site dedicated to the student market. This online community for students of all ages will provide them with a vast number of free services to meet both their academic and social needs.In order to fulfill its mission and objectives, must maximize its strengths and opportunities

Case Analysis: "Customer Driven Learning At Radisson Hotels Worldwide"

1877 words - 8 pages In the case study titled "Customer-Driven Learning at Radisson Hotels Worldwide" the background, growth, and service guarantees of the Radisson Hotel chain is discussed. Radisson Hotels was founded in 1938 by Curtis L Carlson of Carlson Companies Inc. The company's headquarters were located in Minneapolis, Minnesota and was divided into four operating groups - Carlson Hospitality Worldwide, Carlson Wagonlit Travel, Carlson Marketing Group, and

Tim Horton's Case Analysis For Operation Management

1962 words - 8 pages significantly improve inventory management at the Tim Horton's branch by ensuring accuracy in inventory counting, and also decrease carrying/holding costs, ordering costs, possibly eliminate excess inventory, and improve overall business process. The Clear View software give rise to Just In Time (JIT) by instantly signaling Tim Horton's suppliers about inventory levels in real time.An ABC analysis provides the means for identifying those items that

Case Study Analysis Part A ("A Power Play For Howard")

1704 words - 7 pages Below is an observation of negotiations in the National Basketball League, concerning the Washington Bullets' star player Juwan Howard, the Washington Bullets' General Manager, and the Miami Heat's General Manager in a "bidding war" for Juwan Howard's employment with the NBA (Brubaker, Asher, Solomon, and Adande, n.d.). The observation includes a brief summary and analysis of the negotiations between Howard and the bidding teams. The analysis